Despite declining revenue, the company's P/S ratio matches the industry average, indicating investors may be ignoring poor growth and hoping for a business turnaround. However, continued revenue trends could harm the share price. The current P/S ratio is concerning given the company's poor revenue performance.
Shareholders of Innovative Medical ManagementLtd enjoy a 26% gain in share price over the past year amidst an 11% market decline. Despite low revenue growth, the price hike seems fair due to their financial progression and improved recent TSR.
Though unprofitable last year and burdened with debt, Innovative Medical Management seems able to manage its debt due to a solid net cash position. However, slow growth and a cash burn of CN¥21m with a loss of CN¥75m means they might need additional capital soon if break-even isn't reached.
Innovative Medical Management Stock Forum
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